Revolut has ditched its plan to acquire a US bank, according to the Financial Times, and will instead seek to secure a standalone licence to operate in the country.
The UK neobank had been seeking a target with a licence to operate across all 50 states.
However sources told the FT that if it bought a community bank, it might have to commit to keeping open high street branches, while any takeover would also require engagement with US regulators.
Meanwhile the Trump administration has promoted deregulation – and so Revolut is now said to be banking on securing its own licence quickly.
Europe’s most valuable FinTech has discussed applying for a licence through the Office of the Comptroller of the Currency (OCC), according to the sources.
Revolut said: “The US market is critical for Revolut’s global growth strategy and our long-term plan is to establish a bank in the US. That said, we continue to actively explore all options including a de novo bank licence application.”
In the UK, Revolut’s licence – finally secured in 2024 – is with restrictions. A maximum of £50,000 can be held in each bank account. It has built up its board of directors as it seeks to obtain a full licence.
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Last March UK FinTech business lender OakNorth acquired a bank in Michigan which it said would drive its growth across the US.
The London firm, which serves lower mid-market entrepreneurs and real estate firms with credit facilities, agreed a stock-for-stock transaction for Community Unity Bank.
It followed authorisation which OakNorth received in August 2024 from the Federal Reserve and the New York State Department of Financial Services for a Representative Office in New York.
In 2021, Revolut’s rival Monzo pulled out of its US banking application after regulators indicated that it would be unlikely to be approved.